APAC Heirs Favor Professionals for Wealth Transfer: UBS

UBS Report: APAC Heirs Heavily Rely on Professional Succession Planning

A new report from UBS indicates that the next generation of ultra-high-net-worth individuals in the Asia-Pacific region is turning to professional wealth managers for succession planning at a much higher rate than their peers in Europe and North America.

Global Wealth Transfer Landscape

The findings come as a massive global transfer of an estimated $83 trillion in private assets is anticipated over the next two to three decades. According to the UBS Global Next Generation Report, over 40% of APAC families are either currently transferring wealth or actively planning to do so.

The report highlights a significant regional difference in approach: 72% of heirs in APAC seek support from wealth managers and family offices. This figure contrasts sharply with 42% in North America and just 19% in Europe.

Implications for the Wealth Management Sector

This trend signals a maturing and increasingly structured approach to intergenerational wealth transition within the APAC region. "We see APAC families adopting a more structured, deliberate approach to intergenerational transition," stated Young Jin Yee, co-head of UBS Global Wealth Management APAC.

The preference for professional guidance creates a substantial opportunity for global wealth management firms. The report notes that the next generation values access to strong global networks, a key differentiator for established financial institutions operating in the region.

Summary and Outlook

The data points to a clear shift towards professionalized family wealth management in Asia-Pacific. As the great wealth transfer unfolds, demand for expert succession planning and structured advisory services is expected to grow, solidifying the region as a key growth market for the industry.

FAQ

Q: What is the main finding from the UBS report on wealth transfer?
A: The report found that 72% of wealthy heirs in the Asia-Pacific region use professional advisors for succession planning, compared to only 42% in North America and 19% in Europe.

Q: How much wealth is expected to be transferred to the next generation globally?
A: An estimated $83 trillion in private wealth is set to be transferred over the next 20 to 30 years.

Source: Investing.com